Direxion Daily Semiconductors Bull 3x Shares (SOXL) is experiencing a significant pre-market surge, jumping 5.05% as semiconductor stocks continue to rally. This movement follows a strong performance in the previous trading session, where SOXL rose 12% to $10.29.
The bullish sentiment in the semiconductor sector is being fueled by multiple factors. President Donald Trump's recent statement that tariffs on China "will come down substantially" has eased concerns about the U.S.-China trade dispute, which has been weighing heavily on chip stocks. Additionally, famed investor Cathie Wood's Ark Investment Management showed confidence in the sector by purchasing shares in several chipmakers, including $1.1 million worth of Nvidia stock.
Options activity for SOXL has been notably bullish, with 495,518 contracts traded on Wednesday, 70% of which were call options. This high volume of bullish bets, particularly in near-term options, suggests that traders are anticipating further upside for the leveraged ETF. The positive momentum in major semiconductor stocks like Nvidia, AMD, and Micron is likely contributing to SOXL's pre-market rally, as the fund provides triple leverage to the daily performance of the semiconductor sector.
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